Oral Answers to Questions

Wayne David Excerpts

Wednesday 30th November 2016 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

1. What assessment he has made of the potential effect of the UK leaving the EU on the Welsh economy.

[Wayne David (Caerphilly) (Lab)]

8. What recent discussions he has had with his Cabinet colleagues on the potential effect on the Welsh economy of the UK leaving the EU.

[The Secretary of State for Wales (Alun Cairns)]

The Welsh economy approaches EU exit from a very strong position. Since the vote to leave the EU we have seen economic inactivity continue to fall in Wales while employment has risen to a record high. Businesses continue to show confidence in the economy, with new investment across the UK fundamental to prosperity in Wales.

[Alun Cairns]

The hon. Lady raises an important issue, and I would say that Wales has been the fastest growing part of the UK outside London since 2010. She makes an important point in relation to the future of structural funds. She will also appreciate that they are meant to be a short-term boost to the economy, but after 16 years and after £4 billion has been spent, west Wales and the valleys have 64% of UK GVA. I am sure we need to use this opportunity to be positive and do something better with similar structural support.

[Wayne David]

Does the Secretary of State’s answer to that last question imply the Government intend to change the agreed priorities for the spending of the structural funds?

[Alun Cairns]

The hon. Gentleman will appreciate both that his constituency has experienced some significant falls in unemployment since 2010 and that after all that money has been spent those areas voted in the strongest numbers to leave the EU. The point I am making is that the current programme has not worked and has not fitted those communities. Exiting the EU presents an ideal opportunity to revisit this and look to see what we can do better for the hon. Gentleman’s constituency and other communities in Wales in need.